Cash out of leave

Hi All

I have an employee who wants to cash out 37 hours of Annual Leave in this fortnight's pay. He has accumulated 82 hours Annual Leave.

My question is do I have to add another item to his payslip as I recall the ATO stipulating that under the STP Phase 2 it must be under code C.

I have absolutely no idea as this is not an issue I have had to deal with before. Hoping someone can advise me as I need to do this ASAP.

Thanks in advance.

Accepted answers

All comments

Acctd4

Hi @bella_10864825

Yes that's correct - As with Unused Leave Payouts on Termination, anything that has a separate mapping for STP - or a separate calc (like AL v LSL) - you need to create a new Payroll Item for.

At setup, create the AL Cashout as Wage > Hourly Wages on the first 2 windows, then ensure you link it to your AL here:

… in order for the employee's available AL balance to correctly reduce.

(The bottom 2 options - shown here as "LSL" & "Other 2" will display as whatever you have named the last 2 tabs named as, under your employee Leave tabs)

IMPORTANT: This link is only available to select at initial setup, so if you don't configure it correctly here, you will be unable to change this !

Both Taxes apply - & Super - however no leave accrues on leave cashouts 😊

You then utilise this new cashout leave Payroll Item on their Paycheque instead of the original AL one

bella_10864825

Thank you Shaz you were most helpful.It worked Yay!!!!

Acctd4

Great to hear @bella_10864825 ! 👌🏻👏🏻👍🏻

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